564.02 (1m) The department may do any of the following:
(a) Provide all of the security services for the crane game operations under this chapter.
(b) Monitor the regulatory compliance of crane game operations under this chapter.
(c) Audit the crane game operations under this chapter.
(d) Investigate suspected violations of this chapter.
(e) Report suspected gaming-related criminal activity to the division of criminal investigation in the department of justice for investigation by that division.
(f) If the division of criminal investigation in the department of justice chooses not to investigate a report under par. (e), coordinate an investigation of the suspected criminal activity with local law enforcement officials and district attorneys.
27,4728
Section 4728
. 564.02 (2) (a) of the statutes is amended to read:
564.02 (2) (a) No person in this state who owns a crane game may set up for the purposes of play, permit a crane game to be set up for the purposes of play or collect the proceeds of a crane game which is set up for the purposes of play unless the person is registered by the board department and unless an identification number issued by the board department is affixed to each such crane game owned by the person.
27,4729
Section 4729
. 564.02 (2) (b) (intro.) of the statutes is amended to read:
564.02 (2) (b) (intro.) Every person specified under par. (a) shall file with the board department, on application forms prescribed by the board department and signed by the person, all of the following information:
27,4730
Section 4730
. 564.02 (2) (d) of the statutes is amended to read:
564.02 (2) (d) Upon receipt of the application and fee under pars. (b) and (c), the board department shall, if the board department considers the applicant qualified, issue a certificate of registration for the applicant and an identification number for each crane game for which registration is requested.
27,4731
Section 4731
. 564.02 (2) (e) of the statutes is amended to read:
564.02 (2) (e) The registration issued under par. (d) shall remain in effect unless it is canceled by the board department with the advice and consent of the department of justice or unless it is withdrawn by the registered person.
27,4732
Section 4732
. 564.02 (2) (f) of the statutes is amended to read:
564.02 (2) (f) Every person registered under this section shall notify the board department of any change in the information required to be furnished by the person under par. (b), within 10 days following the change.
27,4733
Section 4733
. 564.02 (2) (g) of the statutes is amended to read:
564.02 (2) (g) The board department shall deposit credit all moneys received by the board department under this subsection in to the appropriation account under s. 20.197 (1) 20.505 (8) (j).
27,4734
Section 4734
. 564.02 (2m) (intro.) of the statutes is repealed and recreated to read:
564.02 (2m) Conflicts of interest. (intro.) No employe in the division of gaming who performs any duty related to crane games or the executive assistant or the secretary or deputy secretary of administration and no member of such a person's immediate family, as defined in s. 19.42 (7), may, while that person is employed in such a capacity or for 2 years following the termination of his or her employment with the department, do any of the following:
27,4735
Section
4735. 564.02 (3) (c) of the statutes is amended to read:
564.02 (3) (c) The board department shall reimburse the department of justice for the services of the department of justice under this subsection.
27,4736
Section 4736
. 564.02 (4) of the statutes is amended to read:
564.02 (4) Seizure and sale. The department of justice may seize any crane game owned by a person who is convicted under sub. (5) and may sell the crane game in the name of the state. The department of justice and its agents are exempt from all liability to the owner of the crane game for the seizure or sale of the crane game. The board department shall reimburse the department of justice for the services of the department of justice under this subsection.
27,4737
Section 4737
. 565.01 (4f) of the statutes is created to read:
565.01 (4f) “Multijurisdictional" means pertaining to another state of the United States of America, the District of Columbia, the Commonwealth of Puerto Rico or any territory or possession of the United States of America or the government of Canada or any province thereof.
27,4738
Section 4738
. 565.01 (4r) (a) of the statutes is amended to read:
565.01 (4r) (a) The fact that this state has a state lottery or participates in a multistate multijurisdictional lottery.
27,4739
Section 4739
. 565.01 (6m) (a) (intro.) of the statutes is amended to read:
565.01 (6m) (a) (intro.) “The state lottery" means an enterprise, including a multistate multijurisdictional lottery in which the state participates, in which the player, by purchasing a ticket, is entitled to participate in a game of chance in which any of the following applies:
27,4741
Section 4741
. 565.02 (1) (b) 4. of the statutes is amended to read:
565.02 (1) (b) 4. A violation of a provision of this chapter or rule of the board department relating to the state lottery.
27,4742
Section 4742
. 565.02 (2) (b) of the statutes is amended to read:
565.02 (2) (b) The administrator shall appoint and supervise employes, as specified by the board department by rule under sub. (3) (a), as necessary to carry out the duties of the administrator.
27,4743
Section 4743
. 565.02 (2) (c) 3. of the statutes is amended to read:
565.02 (2) (c) 3. A violation of a provision of this chapter or rule of the board department relating to the state lottery.
27,4744
Section 4744
. 565.02 (3) (intro.) of the statutes is amended to read:
565.02 (3) (intro.) The board
department shall promulgate all of the following rules:
27,4745m
Section 4745m. 565.02 (3) (b) 6. of the statutes is amended to read:
565.02 (3) (b) 6. Qualifications for retailers, in addition to those under this section, as determined by the board department.
27,4746
Section 4746
. 565.02 (4) (intro.) of the statutes is amended to read:
565.02 (4) (intro.) The board
department may promulgate all of the following rules:
27,4747
Section 4747
. 565.02 (4) (e) of the statutes is amended to read:
565.02 (4) (e) Establishing requirements for advertising of the state lottery, and any multistate
multijurisdictional lotteries in which the state participates, that are in addition to those specified under s. 565.32.
27,4748
Section 4748
. 565.02 (4) (f) of the statutes is amended to read:
565.02 (4) (f) Providing for payment of a rate of compensation that is higher than 5% the basic compensation under s. 565.10 (14) (b) for retailers that are nonprofit organizations.
27,4750
Section 4750
. 565.02 (8) of the statutes is created to read:
565.02 (8) The department shall do all of the following:
(a) Subject to s. 565.25, provide all of the security services for the gaming operations under this chapter.
(b) Monitor the regulatory compliance of gaming operations under this chapter.
(c) Audit the gaming operations under this chapter.
(d) Investigate suspected violations of this chapter.
(e) Report suspected gaming-related criminal activity to the division of criminal investigation in the department of justice for investigation by that division.
(f) If the division of criminal investigation in the department of justice chooses not to investigate a report under par. (e), coordinate an investigation of the suspected criminal activity with local law enforcement officials and district attorneys.
27,4751
Section 4751
. 565.05 (1) (intro.) of the statutes is repealed and recreated to read:
565.05 (1) (intro.) No employe of the department who performs any duty related to the state lottery or the executive assistant or the secretary or deputy secretary of revenue may do any of the following:
27,4752
Section 4752
. 565.05 (1) (a) of the statutes is repealed and recreated to read:
565.05 (1) (a) Have a direct or indirect interest in, or be employed by, any vendor while serving as an employe in the department and performing any duty related to the state lottery or as the executive assistant or as secretary or deputy secretary of revenue or for 2 years following the person's termination of service.
27,4754
Section 4754
. 565.10 (1) of the statutes is amended to read:
565.10 (1) Selection of retailers; retailer contract. Under rules promulgated by the board
department under s. 565.02 (3) (b) and (4) (a), the administrator may contract with a person for the retail sale of lottery tickets or lottery shares. Retailers shall be selected for contract so as to provide adequate and convenient availability of lottery tickets and lottery shares to prospective buyers.
27,4755
Section 4755
. 565.10 (7) (b) of the statutes is amended to read:
565.10 (7) (b) The administrator may, under rules promulgated by the board department, contract for a period that is shorter than 3 years in order to stagger lottery retailer contract expiration dates throughout a 3-year period.
27,4756
Section 4756
. 565.10 (8) of the statutes is amended to read:
565.10 (8) Contract fees. A contract entered into under this section may require payment of a nonrefundable initial application fee or a nonrefundable annual fee for continuation, or both, in an amount promulgated by the board department by rule under s. 565.02 (4) (b). A separate nonrefundable fee, in an amount specified in rules promulgated under s. 565.02 (4) (b), may be required for each certificate of authority issued under sub. (11).
27,4757
Section 4757
. 565.10 (13) of the statutes is amended to read:
565.10 (13) Bond. The commission department may by rule under s. 565.02 (4) (d) require fidelity bonds from retailers. In lieu of a bond, the commission
department may purchase blanket bonds covering all or selected retailers or may allow a retailer to deposit and maintain with the commission department interest-bearing or interest-accruing securities approved by the commission department. Such securities shall be held in trust by the commission department and shall have at all times a market value at least equal to the amount required by the commission department.
27,4758
Section 4758
. 565.10 (14) (b) of the statutes is amended to read:
565.10 (14) (b) The basic compensation to be paid to a retailer is 5.5% of the retail price of lottery tickets or lottery shares sold by the retailer. The board
department may, in the rules promulgated under s. 565.02 (4) (f), provide for the payment of a higher rate of compensation to nonprofit organizations making sales under a contract issued on a temporary basis than the rate of compensation paid to other retailers.
27,4759
Section 4759
. 565.10 (14) (b) of the statutes, as affected by 1997 Wisconsin Act .... (this act), is repealed and recreated to read:
565.10 (14) (b) 1. The basic compensation to be paid to a retailer for the sale of a lottery ticket or lottery share described under s. 565.01 (6m) (a) 2. is 5.5% of the retail price of lottery tickets or lottery shares sold by the retailer.
2. The basic compensation to be paid to a retailer for the sale of a lottery ticket or lottery share described under s. 565.01 (6m) (a) 1. is 6.
25% of the retail price of lottery tickets or lottery shares sold by the retailer.
4. The department may, in the rules promulgated under s. 565.02 (4) (f), provide for the payment of a higher rate of compensation to nonprofit organizations making sales under a contract issued on a temporary basis than the rate of compensation paid to other retailers.
27,4760
Section 4760
. 565.10 (15) of the statutes is amended to read:
565.10 (15) Remitting proceeds. A retailer shall, on a daily basis, unless another basis, but not less than weekly, is provided by the board department by rule, remit to the department the lottery proceeds from the sale of lottery tickets or lottery shares. The amount of compensation deducted by the retailer, if any, shall be indicated as a deduction from the total remitted.
27,4761
Section 4761
. 565.12 (2) of the statutes is amended to read:
565.12 (2) If the administrator determines that the immediate suspension or termination of a lottery retailer contract entered into under s. 565.10 is necessary to protect the public interest or the security, integrity or fiscal responsibility of the lottery, the administrator may, without prior notice or hearing, suspend for a specified period or terminate the lottery retailer contract by mailing to the retailer a notice of suspension or termination that includes a statement of the facts or conduct that warrant the suspension or termination and a notice that the retailer may, within 30 days after the date on which the notice of suspension or termination is mailed, have the suspension or termination reconsidered by the administrator. If, upon reconsideration, the administrator affirms the determination to suspend or terminate the lottery retailer contract, the retailer shall be afforded an opportunity for a hearing before the board department to review the determination of the administrator.
27,4762
Section 4762
. 565.12 (3) of the statutes is amended to read:
565.12 (3) The board department shall render the final decisions under s. 227.47 for all terminations and suspensions under subs. (1) and (2).
27,4763
Section 4763
. 565.17 (5) (title) of the statutes is amended to read:
565.17 (5) (title) Board members and employes; certain Certain department employes.
27,4764
Section 4764
. 565.17 (5) (a) of the statutes is repealed and recreated to read:
565.17 (5) (a) No employe of the department who performs any duty related to the state lottery or the executive assistant or the secretary or deputy secretary of revenue and no member of such a person's immediate family, as defined in s. 19.42 (7), may purchase a lottery ticket or lottery share.
27,4765
Section
4765. 565.25 (1m) of the statutes is amended to read:
565.25 (1m) Scope of authority. Subject to approval by the board secretary of revenue, the administrator may determine whether lottery functions shall be performed by department of revenue employes or by one or more persons under contract with the department of administration, except that no contract may provide for the entire management of the lottery or for the entire operation of the lottery by any private person. The department of administration may contract for management consultation services to assist in the management or operation of the lottery. The department of administration may not contract for financial auditing or security monitoring services, except that, if the department of administration delegates under s. 16.71 (1) to the department of revenue the authority to make a major procurement, the department of revenue may contract with the department of administration for warehouse and building protection services relating to the state lottery. If the department of administration delegates under s. 16.71 (1) to the department of revenue the authority to make a major procurement, the department of revenue shall assume the powers and duties of the department of administration and the administrator shall assume the powers and duties of the secretary of administration under this section and ss. 16.70 to 16.77, except under ss. 16.72 (4) (a), 16.76 (1) and 16.77 (1).
27,4766
Section 4766
. 565.25 (2) (a) 6. of the statutes is amended to read:
565.25 (2) (a) 6. If the department of administration delegates under s. 16.71 (1) to the department of revenue the authority to make a major procurement, the award of the major procurement contract is subject to approval by the board and to the requirements in ss. 16.72 (4) (a) and 16.76 (1). Copies of requisitions and contracts for major procurements shall be maintained by the administrator and shall be subject to inspection and copying under subch. II of ch. 19.
27,4767
Section 4767
. 565.25 (2) (c) of the statutes is amended to read:
565.25 (2) (c) A major procurement contract under this subsection may be for any term deemed to be in the best interests of the state lottery or the multistate multijurisdictional lottery in which the state participates, but the term and any provisions for renewal or extension shall be incorporated in the bid specifications or proposal solicitation and the contract document.